STOCKS NEWS EUROPE-Euro STOXX's recent low a pivotal support-UBS

The short-term trading low of 2,877 points touched by the euro zone's blue-chip Euro STOXX 50 (Zurich: ^STOXX50E - news) index on Sept. 30 will act as a pivotal support, and if it can break out of its short-term downtrend it could set up a fresh test of 3,000 points, UBS (Berlin: UBRA.BE - news) analysts write in a note.

However, a break below the support would give a negative short-term signal and tee up a retest of the 38 percent retracement of the index's June-September rally, it adds. The Euro STOXX 50 index is currently trading at 2,916.92 points.

UBS says it continues to see a chance of at least a small bounce for Germany's DAX (Xetra: ^GDAXI - news) and a retest of its early September high before facing weakness into late October or early November. The DAX currently trades at 8,583.18 points

"On the downside, the market has support at 8,457 and worst could be a setback towards 8,300, which would close the early September gap and open the door for another rally into year-end."

Reuters messaging rm://atul.prakash.thomsonreuters.com@reuters.net